96.6% Surge in Al-Amaliya Energy's Profits in the First Half

Net profit nearly doubled, rising 96.6 percent year-on-year to KD 4.4 million, reflecting the full contribution of the expanded drilling fleet during the period and stable core operating margins.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 28.3 percent year-on-year to KD 9 million, with a margin of 49.8 percent, in line with the financial guidance provided by the company at the time of its listing.

Revenues grew 34.4 percent year-on-year to KD 18.1 million, driven primarily by the full six-month contribution of the ten new rigs commissioned in 2025. The company operated 20 rigs throughout the period, compared to a partial contribution in the same period last year.

The backlog reached a record high of approximately KD 349 million, distributed roughly 61 percent to drilling services and 39 percent to oilfield services, providing clear revenue visibility for several years. Operating cash flow increased 48.1 percent year-on-year to KD 5.4 million, in line with profitability growth.

The company invested KD 20.5 million during the period in fleet expansion and new oilfield service platforms, bringing total property, plant, and equipment to KD 142.7 million.

The net debt-to-equity ratio improved from 1.65 to 0.84 times year-on-year, with total equity exceeding KD 86 million, reflecting a stronger and more flexible capital structure.

During the period, 20 rig moves were executed, compared to 100 in the first half of 2025, while the fleet maintained a utilization rate of 100 percent with no health, safety, or environmental incidents recorded.

The Board of Directors recommended an interim cash dividend of 3 fils per share for the first half of 2026, totaling approximately KD 1.7 million. This marks the company’s first interim cash distribution, reflecting its commitment to delivering sustainable returns to shareholders.

Commenting on the company’s results, Sheikh Mubarak Abdullah Al-Mubarak Al-Sabah, Chairman of the Board of Directors of Al-Amaliyah Energy, said: “The first half of 2026 reflects the strong performance of Al-Amaliyah Energy, with net profit nearly doubling year-on-year and the backlog reaching a record high of approximately KD 349 million. In line with our commitment to delivering sustainable shareholder returns, the Board of Directors has recommended to the General Assembly the approval of the company’s first interim cash distribution of 3 fils per share.”

For his part, Ahmed Al-Ajlan, Board Member and Chief Executive Officer, added: “The first half of 2026 results confirm the operational platform’s capacity for expansion and the successful implementation of our service line diversification strategy. Revenues grew 34.4 percent year-on-year, and net profit rose 96.6 percent, while the company invested KD 20.5 million in fleet expansion and new service lines.”

He added: “The backlog reached a record high of approximately KD 349 million, with the contribution of oilfield services rising to 39 percent of total business, reflecting progress in our diversification strategy toward higher-value services. With the necessary financing secured to execute the backlog, commission the seven rigs under development, and launch new service lines, the company is in a strong position to continue growth, focusing on delivering long-term value to national oil companies, our partners, and shareholders.”

Drilling and well services account for approximately 61 percent of the company’s total order book, with an average remaining contract duration of five years. During the first half, Operate Energy operated 20 drilling rigs throughout the period, with the fleet maintaining a utilization rate of 100 percent, supported by disciplined preventive maintenance programs and operational standards established since the company’s inception. A total of 202 rig moves were executed in the first half, compared to 100 in the same period of 2025, reflecting full activity across Operate Energy’s expanded well services fleet and Kuwait Oil Company’s drilling schedules. Drilling services revenue rose by 9 percent year-on-year to reach $13.99 million, while drilling rig rental and transport revenue grew by 13.8 percent to $3.23 million.

Oilfield services represent 9 percent of the company’s order book, with average remaining contract durations ranging between six and seven years. During the first half of 2026, the company continued to operate its electric submersible pump (ESP), slickline, and once-through steam generator (OTSG) service lines according to schedule, investing $5.5 million in these service lines during the period. Other operating revenues, which include ancillary services and inspection services, increased by 60.8 percent year-on-year to $0.85 million. The continuous expansion in this sector diversifies the company’s revenue sources and deepens its integration across the value chain in exploration and production activities.

During the period, the company signed a strategic joint venture agreement with Kelton, a global company specializing in digital transformation and AI-enabled enterprise technologies, aimed at accelerating AI-driven digital transformation in the Gulf energy sector.

Regional geopolitical developments during the period led to some increases in logistics and supply chain costs; however, operational activities, contract execution, and customer activities continued without any significant disruption, and no indicators of value impairment were observed.

The company’s strategic priorities for the remainder of the year remain focused on operating the ESP, slickline, steam generator, and seven new drilling rig service lines, executing the standard order book, expanding the fleet and operational readiness, diversifying into higher-value oilfield services, and maintaining financial discipline, safety, and operational excellence.

Operate Energy continues to closely monitor regional developments while maintaining its focus on delivering high-quality services and achieving sustainable long-term value for shareholders.

Operate Energy expects EBITDA margins to remain consistent with the guidance provided at the time of listing, with full operation of the contracted order book and new drilling rigs reaching stable operating levels, while the ESP platform is expected to deliver a healthy profit margin. In the medium term, the company targets a revenue mix of approximately 60 percent for drilling services and 40 percent for oilfield services, and intends to maintain a net debt-to-equity ratio below 1.25 times. Existing capital commitments totaling $23.2 million are expected to be funded through undrawn approved banking facilities and operating cash flows.